China to Revise Anti-Money Laundering Law by 2025
China is planning a significant revision to its Anti-Money Laundering (AML) Law by 2025, marking the first major update since 2007. The aim of the amendments is to combat the rising number of crypto-related money laundering crimes.
Urgency in Reform
The urgency for this reform was highlighted during a recent State Council executive meeting chaired by Prime Minister Li Qiang, indicating the government’s increased focus on tackling crypto money laundering crimes.
Challenges in Framing Regulations
Legal experts have expressed concerns about the challenges in regulating crypto transactions due to the lack of a clear definition of virtual assets. This ambiguity makes it difficult to establish operational guidelines for law enforcement and judicial bodies.
Key Changes in the Amended AML Law
The revised AML law includes a broader definition of money laundering activities, extending AML obligations to non-financial entities, and imposing AML responsibilities on individuals and organizations. The amendments also introduce higher penalties for AML violations.
Commitment to International Practices
This legislative move demonstrates China’s commitment to align with international practices and establish a risk-based approach to AML/CTF efforts. However, the draft version of the law may still undergo changes before finalization.
Hot Take: China Takes Aim at Crypto Money Laundering with AML Law Overhaul
China is set to revamp its Anti-Money Laundering Law, focusing on cryptocurrency transactions as part of its efforts to combat rising instances of crypto-related money laundering crimes. The amendments, which will be implemented by 2025, mark the first major revision since 2007. The urgency in reform was emphasized during a recent State Council executive meeting, underscoring the government’s intensified focus on addressing this issue. However, challenges remain in framing regulations around crypto transactions due to the lack of a clear definition of virtual assets. Despite these challenges, China’s commitment to aligning with international practices and adopting a risk-based approach to AML/CTF efforts is evident.
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